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Hax Made with Shenzhen

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Built physical things with Shenzhen and leverage what made shanzhai possible...

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Hax Made with Shenzhen

  1. 1. HAXLR8R [TC DISRUPT BEIJING] FROM MADE IN CHINA TO MADE WITH SHENZHEN PROUDLY MADE WITH SHENZHE N
  2. 2. AGENDA 1. Hardware Renaissance 2. The HAX approach 3. Beware of the12 Wares 4. Why Shenzhen 5. From Shanzhai to Startups
  3. 3. 1. HARDWARE RENAISSANCE
  4. 4. HARDWARE RENAISSANCE PROTOTYPING IS EASIER THAN EVER Arduino / Pi / Spark / 3D printing / Sensors / BLE / Smartphones / Cloud SUPPLY CHAIN IS BETTER THAN EVER – China (Shenzhen) has the whole chain – Fast, Affordable, Scalable MORE FUNDING – KickStarter (250,000+ HW backers!), IndieGoGo – More VC & Angel money, acquisitions
  5. 5. HARDWARE RENAISSANCE PROTOTYPING IS EASIER THAN EVER Arduino / Pi / Spark / 3D printing / Sensors / BLE / Smartphones / Cloud SUPPLY CHAIN IS BETTER THAN EVER – China (Shenzhen) has the whole chain – Fast, Affordable, Scalable MORE FUNDING – KickStarter (250,000+ HW backers!), IndieGoGo – More VC & Angel money, acquisitions
  6. 6. HARDWARE RENAISSANCE PROTOTYPING IS EASIER THAN EVER Arduino / Pi / Spark / 3D printing / Sensors / BLE / Smartphones / Cloud SUPPLY CHAIN IS BETTER THAN EVER – China (Shenzhen) has the whole chain – Fast, Affordable, Scalable MORE FUNDING – KickStarter (250,000+ HW backers!), IndieGoGo – More VC & Angel money, acquisitions
  7. 7. VALUE CREATION
  8. 8. 2. THE HAX WAY
  9. 9. A NEW KIND OF ACCELERATOR Hardware only High Touch Support Ecosystem driven Target : 100% Survive & Thrive
  10. 10. IN THE “SILICON VALLEY FOR HARDWARE” 111 days in Shenzhen $25-$50k for 6%-8% SF Demo Day
  11. 11. PRINCIPLES Build the right thing Build things right Ship fast
  12. 12. FOUNDER EMPOWERMENT Curriculum Ecosystem Meaningful Products
  13. 13. HAX STARTUPS 50 Startups (5x10) 97.5% Survival rate (39/40) 30/10/10 US/EU/Asia
  14. 14. HAX PEOPLE 130 HW Startup Founders 50 Mentors & Advisors 10 Full-time partners & Experts
  15. 15. HAX FUNDING & CROWDFUNDING 100% Crowdfunding success (21/21) $200k Average backing $m In products sold 75% Follow-on funding
  16. 16. MEDIA COVERAGE “Lean Hardware” Series
  17. 17. HAX APPROACH • Global selection – Functional prototype – Something hard • HAX Support & Curriculum – Positioning / Productization / Launch – Founder empowerment • Long-term thinking – Foundation for the future – Ecosystem + Office access + HAX Fund
  18. 18. RE-POSITIONING PROBLEM SOLUTION PROBLEM NEW SOLUTION NEW PROBLEM SOLUTION NEW PROBLEM NEW SOLUTION PROBLEM SOLUTION
  19. 19. SLUMBOR
  20. 20. LEAN HARDWARE PRINCIPLES 1. Validate problem vs. Assume 2. Partner w/ factories vs. Abdicate 3. Fast to market vs. Long cycles 4. Capital effective vs. Capital intensive 5. User backed vs. Venture backed
  21. 21. SCALING HARDWARE STARTUPS PROTOTYPING PRODUCTION SCALING $ Founders Friends Family Fools Crowdfunding Accelerators Angels Grants Sales Factoring Banks VCsPre-orders RETAIL CHASM TIME
  22. 22. 3. BEWARE OF THOSE 12 “WARES” wow such excite very hardware so future
  23. 23. FUNWARE 1. FUNware No business
  24. 24. CHINDOGU 1. FUNware No business Kenji Kawakami Chindogu pioneer + tissue roll headgear + eyedrop glasses
  25. 25. MORE CHINDOGU Baby mop Open eyes stickers Back scratching grid
  26. 26. FUNWARE 1. FUNware No business (includes NICHEware and ARTware)
  27. 27. RUBIK’S CUBE ROBOT SOLVER
  28. 28. FLAPPY BIRD MACHINE
  29. 29. FLAPPY BIRD ROBOT
  30. 30. ANIMATED “PENIS WALL” Kinetic sculpture (81 3d-printed penises) by Peiqi SU @ NYU ITP, 2014
  31. 31. EASYWARE 1. FUNware No business 2. EASYware Not defensible
  32. 32. EASYWARE 1. FUNware No business 2. EASYware Not defensible “Two sensors and an app” Nobel-grade research
  33. 33. PRESSY 1. FUNware No business 2. EASYware Not defensible PRESSY ($27) Funded Oct 2013 Raised $695,000
  34. 34. PRESSY 1. FUNware No business 2. EASYware Not defensible Speed Button ($10) (“kuai anniu”) Funded Jan 2014 Raised $34k
  35. 35. PRESSY 1. FUNware No business 2. EASYware Not defensible Xiaomi MiKey ($0.8) Launched April 2014 “If Xiaomi starts producing buttons like Pressy, we will start to produce smartphones.” - Founder of Pressy
  36. 36. SAMEWARE 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning
  37. 37. THE BETTER MOUSETRAP MYTH 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning “Build a better mousetrap and the world will beat a path to your door” Ralph Waldo Emerson (maybe)
  38. 38. THE BETTER MOUSETRAP MYTH 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning The problem with mousetraps • 4,400 patents since 1879 • 400 applicants per year • “most frequently invented device in U.S. history”
  39. 39. 47 companies launched 3D printers and raised $100K+ or more in crowdfunding. Source: Flybridge Capital Partners, 2014.6 COMMODITIZATION
  40. 40. THE FIRST WAVE IS OVER • First wave of hardware startups –Activity trackers Fatigue + MiBand at $13 –Smart watches Crowded –3D printers Makerbot or cheap clone
  41. 41. THE FIRST WAVE IS OVER • First wave of hardware startups –Activity trackers Fatigue + MiBand at $13 –Smart watches Crowded –3D printers Makerbot or cheap clone • Next generation has to be MUCH better
  42. 42. SOLUTIONWARE 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem
  43. 43. 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem “When you have a hammer, everything looks like a nail” THE HAMMER PROBLEM
  44. 44. VAPORWARE 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem 5. VAPORware Can’t be made
  45. 45. BACK TO THE FUTURE HOVERBOARD 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem 5. VAPORware Can’t be made
  46. 46. DROPKICKER 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem 5. VAPORware Can’t be made
  47. 47. LAMEWARE 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem 5. VAPORware Can’t be made 6. LAMEware Not on spec
  48. 48. WHEN SOFTWARE WAS STILL HARDWARE… LANDFILL IN NEW MEXICO FULL OF GAME CARTRIDGES…
  49. 49. WHEN SOFTWARE WAS STILL HARDWARE… 5.5 weeksCREATOR NOW A PSYCHOTHERAPIST FOR SILICON VALLEY'S HI-TECH COMMUNITY
  50. 50. FAILWARE 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem 5. VAPORware Can’t be made 6. LAMEware Not on spec 7. FAILware Successfully built the wrong thing
  51. 51. BUILDING SOMETHING (ALMOST) NOBODY WANTS
  52. 52. LATEWARE 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem 5. VAPORware Can’t be made 6. LAMEware Not on spec 7. FAILware Successfully built the wrong thing 8. LATEware Validated market but woke up competitors
  53. 53. “WHY LOCKITRON HAS TAKEN SO LONG TO SHIP” (CROWDFUNDED WITH $2.3M IN 4Q2012)
  54. 54. LOSSWARE 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem 5. VAPORware Can’t be made 6. LAMEware Not on spec 7. FAILware Successfully built the wrong thing 8. LATEware Validated market but woke up competitors 9. LOSSware Minimal or negative margins
  55. 55. “YOU WILL BE RECEIVING SHRU AT COST PRICE.”
  56. 56. BOREWARE 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem 5. VAPORware Can’t be made 6. LAMEware Not on spec 7. FAILware Successfully built the wrong thing 8. LATEware Validated market but woke up competitors 9. LOSSware Minimal or negative margins 10. BOREware People stop using it
  57. 57. BIGGEST TREND IN WEARABLES?
  58. 58. CHINA’S BAROMETER
  59. 59. Mi Band by Xiaomi Fitness Tracker ($13) - Counts your steps Vibrates you awake 30 days standby Water resistant BASIC FITNESS TRACKERS ARE DONE
  60. 60. FUTUREWARE 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem 5. VAPORware Can’t be made 6. LAMEware Not on spec 7. FAILware Successfully built the wrong thing 8. LATEware Validated market but woke up competitors 9. LOSSware Minimal or negative margins 10. BOREware People stop using it 11. FUTUREware No market before years
  61. 61. LOCALWARE 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem 5. VAPORware Can’t be made 6. LAMEware Not on spec 7. FAILware Successfully built the wrong thing 8. LATEware Validated market but woke up competitors 9. LOSSware Minimal or negative margins 10. BOREware People stop using it 11. FUTUREware No market before years
  62. 62. GALAPAGOS SYNDROME “Fantastically evolved and divergent from their mainland cousins.” Takeshi Natsuno i-mode creator & Keio Univ. Professor
  63. 63. NOT JUST JAPAN! “SMS set back the mobile Internet by 10 years” –1999: i-mode in Japan –2007: i-phone
  64. 64. SOME EXTRAS 13.TEMPware Temporary solution
  65. 65. SOME EXTRAS 13.TEMPware Temporary solution 14.WEAKware Limited value proposition
  66. 66. SOME EXTRAS 13.TEMPware Temporary solution 14.WEAKware Limited value proposition 15.ALIware Repackage a product sourced on Alibaba
  67. 67. ALIWARE
  68. 68. ALIWARE OR STORYWARE?
  69. 69. SOME EXTRAS 13.TEMPware Temporary solution 14.WEAKware Limited value proposition 15.ALIware Repackage a product sourced on Alibaba 16.INFRAware Requires special infrastructure
  70. 70. SOME EXTRAS 13.TEMPware Temporary solution 14.WEAKware Limited value proposition 15.ALIware Repackage a product sourced on Alibaba 16.INFRAware Requires special infrastructure 17.SOLITware Single founder
  71. 71. SOME EXTRAS 13.TEMPware Temporary solution 14.WEAKware Limited value proposition 15.ALIware Repackage a product sourced on Alibaba 16.INFRAware Requires special infrastructure 17.SOLITware Single founder 18.AWKware Awkward form factor, usage or image
  72. 72. TEDDY LOVE Teddy Love is a unique, discreet, sexual toy that provides pleasure through dual, vibrating mechanisms in Teddy's nose and
  73. 73. SOME EXTRAS 13.TEMPware Temporary solution 14.WEAKware Limited value proposition 15.ALIware Repackage a product sourced on Alibaba 16.INFRAware Requires special infrastructure 17.SOLITware Single founder 18.AWKware Awkward form factor or usage More ideas welcome!
  74. 74. 4. WHY SHENZHEN
  75. 75. 3 OLD MYTHS IN 1 SENTENCE
  76. 76. 3 OLD MYTHS IN 1 SENTENCE “China only makes cheap stuff at scale and copies”
  77. 77. TODAY’S REALITY • Your iPad • Start from 1 unit • IP is at risk if: –Your product is trivial –You pick the wrong partner –You’re already successful
  78. 78. THE COST OF NOT BEING IN CHINA “You have to consider the cost of not being in China.” Will Hart Chief of Staff Spark.io (HAX 2)
  79. 79. WHAT ABOUT MY IP? “Protection of IP can be complex manufacturing or product, community, and cloud based services.” Idan Beck Founder gTar (HAX Fund)
  80. 80. KNOW-HOW “Chinese factory engineers master the lost art of injection molding.” "Being on the factory floor will help you solve problems much faster, Bunnie Huang Hardware Hacker Bunnie Studios (HAX Mentor)
  81. 81. KNOW-HOW “Chinese factory engineers master the lost art of injection molding.” ”On the factory floor you solve problems much faster, speaking Bunnie Huang Hardware Hacker Bunnie Studios (HAX Mentor)
  82. 82. WHY GO TO CHINA EARLY? • Prototype better & faster –PCBs overnight –All components you need –Tools for prototyping –Know how –Design for manufacturing –(much) Cheaper Where is the mold?
  83. 83. COMPONENTS HEAVEN
  84. 84. CREATE WITH SHENZHEN: AVIDBOTS Making industrial cleaning smart
  85. 85. LONG-TERM BENEFITS • Integrated supply chain • Build and scale fast, from 1 to millions • Prepare scaling before it’s painful!
  86. 86. WHY APPLE IS (STILL) IN CHINA • Speed • Flexibility • Know-how • (still) Better prices
  87. 87. WHY WOULD A LAOBAN CARE?
  88. 88. FOUR-AND-A-HALF REASONS 1. Future business 2. Improve capabilities 3. Use excess capacity 4. Internationalize 4.5 Fun
  89. 89. FOUR-AND-A-HALF REASONS 1. Future business 2. Improve capabilities 3. Use excess capacity 4. Internationalize 4.5 Fun The rest is up to you
  90. 90. 5. FROM SHANZHAI TO STARTUPS
  91. 91. CHINA’S HARDWARE FUTURE • Strengths – Engineers & Scientists – Manufacturing – China market knowledge • Needs – Strategic Positioning – Advisors & Mentors – Self-promotion skills – US market access
  92. 92. CHINA @ HAX GROUP STARTUP S NAMES DOMAIN HAX 5 2 COMPANY 1 COMPANY 2 ROBOT HEALTH HAX 4 2 KAST DARMA 3D PRINTER HEALTH HAX 3 1 VIGO WEARABLE HAX 2 2 HEX YEELINK ROBOT IOT HAX 1 1 MAKEBLOCK EDUCATION
  93. 93. BENJAMIN@HAXLR8R.COM WWW.SLIDESHARE.COM/HAXLR 8R Share Comment Apply

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